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What is the budgeted net operating income

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Reference no: EM132612901

Ali ,Company prepared the following preliminary budget assuming no advertising expenditures:

Selling price................... $10 per unit

Unit sales....................... 100,000

Variable Costs ............... $600,000

Fixed costs .................... $300,000

Question 1- What is the BEP in units and in $

Question 2- Based on a market study, the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if $100,000 were spent on advertising. Assuming that these changes are incorporated in its budget. What is the budgeted net operating income?

Reference no: EM132612901

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